Microsoft and Crytek UK have declined to comment."Crytek believes that Microsoft will announce and launch its new machine ahead of rival Sony, though the developer is also investing resources into next-generation PlayStation development," the VideoGamer article read.

A "high-ranking industry source at Crytek" is quoted as saying TimeSplitters 4 is currently being demonstrated internally.

That game, built with CryEngine 3, was shown privately in video form at E3 2011, VideoGamer said.

'100 per cent not true'

The new information sits in-line with several Develop sources who say new Xbox hardware is on desks at an increasing number of studios.

In May, Develop reported that a new Xbox console was on desks at one EA studio that cannot be named.

EA declined to comment on the matter, though it went on to allege the article was "100 per cent not true".

The next Xbox will liekly appear at E3 next year, the VideoGamer article claimed.